The daily-slice allocation is one of the things that makes nouz different from a typical bookkeeping tool. Most accounting software shows you fixed costs only when they're paid — rent hits the books on the 1st of the month, salaries on payday. nouz spreads them across every day they apply, so your daily EBIT reflects an honest share of overhead rather than swinging wildly based on when bills landed.
01 Why daily, not monthly
If we only subtracted rent on the first of the month, EBIT would look great for 30 days and catastrophic for one. That's not useful for daily decision-making. Slicing the rent across all days means every day's EBIT reflects its honest share of the fixed-cost overhead — and the daily number stays meaningful day-to-day.
The same logic applies to weekly costs (cleaner service, weekly accountant), yearly costs (annual licences, insurance), and daily costs (rare, but per-diem casual labour fits). All get normalised to a daily slice so the daily P&L line is consistent.
02 The math
For a monthly cost, nouz divides by 30.4375 — the average number of days in a month (365.25 ÷ 12). For a yearly cost it divides by 365.25. The formula lives in lib/calculations.ts:
daily_slice = amount / days_per_period
The 30.4375 / 365.25 divisors include the average leap-day adjustment so monthly slices summed across a year equal the yearly cost, within rounding error.
03 Four frequencies, one daily slice
Whichever frequency you pick, the math reduces to one daily slice that subtracts from EBIT every day the cost is active.
04 Does it sum back to the bill?
Yes, within rounding. Thirty daily slices of €92,05 from a €2.800 monthly rent sum to €2.761,50 — close enough that the rounding error is invisible. Across a full year, the slices sum to exactly €2.800 × 12 = €33.600 (the divisor is exact for full-year arithmetic).
In the P&L views, when you switch from day to month view, nouz shows the actual monthly cost (€2.800) rather than the sum-of-30-slices (€2.761,50). The reconciliation hides the rounding artifact at the view level.
05 Allocation vs cash flow
This is the difference between accounting EBIT and cash flow. EBIT measures whether the day was economically profitable; cash flow measures when money moved. nouz is built for the daily EBIT question — for cash flow tracking specifically, you'd use your bank statement or an actual cash-flow tool.
Was this article helpful?
Your vote helps us decide what to write next.